I have several questions on 1099Q and college education costs.
I received the 1099-Q form from my brokerage for the Coverdell ESA account, showing:
Recipient's TIN: my child's SSN
(addressed to
"me
FBO my child's name")
box1: gross distribution amount, which equals to the amount I sent to my child's medical school.
box 3: Basis: blank
Fair market value: 0.00
distribution code: 1
Before I entered 1099-q and education cost information, I owned (married filing jointly) IRS ~$800. After I entered 1099Q info, I owned IRS ~$5000. After I entered the education cost, now I own IRS ~3000.
Now my questions:
1. Who is the recipient of the 1099Q, me or my daughter?
2 Should I enter both 1099Q and 1099T info into MY return?
3. Is it necessary to track down my transaction history to calculate the basis of the Coverdell ESA account, and entered it to the 1099Q section in TurboTax, instead of entering 0?
4. All the distribution goes to medical school, Why I ended up paying more taxes?
Thanks,
S
